CoreWeave's CEO Just Gave Investors Great News

This year has been a volatile one for artificial intelligence (AI) company CoreWeave (NASDAQ:CRWV). Its success largely hinges on demand for all things AI-related, as the company makes money by providing customers access to Nvidia's high-end chips.

Over the past 12 months, however, the stock has declined by 24%, and it's currently trading around $84 -- a far cry from its 52-week high of more than $153. Investors have been growing more concerned about AI stocks as a whole, especially ones like CoreWeave that continue to struggle with profitability.

But CoreWeave's CEO recently gave investors some good news that could boost the stock heading into the latter part of the year: there continues to be sky-high demand.

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CoreWeave's business is likely to continue growing at a fast rate

At a recent tech conference, CoreWeave CEO Michael Intrator stated that the company is "struggling to meet demand every day," calling this a "unique moment" for the business. Demand for leading chips remains robust, a good sign for investors who may have been worried about potential slowdowns ahead.

CoreWeave is coming off an incredibly strong second quarter, where its sales rose by 112%, totaling $2.6 billion for the period ending June 30. One troubling sign, however, remains its lack of profitability. Despite the sharp increase in business, CoreWeave incurred an operating loss of $49 million, before accounting for its interest costs, which totaled $640 million during the period.

The strong growth may, however, be enough to convince AI investors to remain bullish on CoreWeave. And the business is making progress with respect to its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which totaled $1.5 billion during the period and was double what it was a year ago ($753 million).

Is CoreWeave's stock likely to rally before the end of 2026?

Although it hasn't been a smooth ride for CoreWeave's stock in 2026, it's still up around 18% thus far. With encouraging signs that demand is likely to remain strong in upcoming quarters, I believe the stock may end up rallying before the end of the year. However, how much higher it will go may inevitably depend on the outlook for tech in general, plus what happens with interest rates.

For long-term investors bullish on the AI story, CoreWeave may be a good growth stock to buy given its close relationship with Nvidia, as companies continue to invest heavily in AI.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.